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How AI-driven technological transformation advances the modernization integrated transition of energy

Author

Listed:
  • Liu, Yaobin
  • Zheng, Zenghui
  • Deng, Nan
  • Li, Tongning

Abstract

In the context of China’s accelerating modernization, clarified "dual-carbon" goals, and steady progress toward ecological civilization, effectively leveraging Artificial Intelligence (AI) is crucial for achieving energy modernization and transformation. Based on the panel data of 30 Chinese provinces from 2003 to 2019, this study constructs a theoretical framework AI technology innovation (AITI), clean electricity grids (CEG), and the modernization integrated transition of energy (EMIT). Using the system generalized method of moments (SYS-GMM), it deeply analyzes the relationship between AITI and EMIT, and introduces CEG as a mediating variable to reveal the underlying mechanism. Meanwhile, a dynamic threshold effect model is applied to evaluate the heterogeneous performance of AITI under different energy price levels. The results show that (1) AITI not only directly boosts EMIT but also accelerates its progress by enhancing CEG. (2) Heterogeneity analysis reveals that AITI has a stronger effect in regions with higher energy price, incomplete urban infrastructure, and without major energy transmission projects. In areas where energy price exceeds 1.076, the standardized coefficient of AITI is approximately 1.1658, which is 18 times the average level. This study offers a broader perspective on energy transition and provides practical methods and recommendations for China to use AI in advancing ecological civilization and achieving "dual-carbon" goals.

Suggested Citation

  • Liu, Yaobin & Zheng, Zenghui & Deng, Nan & Li, Tongning, 2026. "How AI-driven technological transformation advances the modernization integrated transition of energy," Economic Analysis and Policy, Elsevier, vol. 91(C), pages 206-223.
  • Handle: RePEc:eee:ecanpo:v:91:y:2026:i:c:p:206-223
    DOI: 10.1016/j.eap.2026.03.003
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